Human Settlements
- Why has the City of Cape Town not fully utilised the allocated Urban Settlements Development Grant (USDG) since the introduction of the grant;
- whether his Department has an intervention strategy to improve the situation; if not, why not; if so, what are the relevant details;
whether any corrective steps have been taken against the relevant authorities; if not; why not; if so, what are the relevant details?
I do not perform an oversight role as the Urban Settlements
Development Grant is transferred directly to City of Cape Town by
the National Department of Human Settlements. However, the City
responded as follows:
- The City of Cape Town has a history of legislative compliance,
governance and excellence regarding its allocation and targeted use of the Urban Settlements Development Grant (USDG), since the inception of the USDG.
Annually the City commits 100% of its annual USDG allocation to service delivery within its budgets and issues compliant contracts (focussing on poor households) as required in terms of the Division of Revenue Act (USDG Framework).
Any unspent USDG funds at a year-end must, in order to be approved
for rolled over by National Treasury, be contractually committed to
ongoing projects thereby confirming the City excellence in its Supply
Chain and contracting processes.
For the 2016/2017 financial year, the City expended 102,6% of its
2016/2017 annual USDG funds allocation. (92,8% - including
rollovers)
The City (on direction of the Executive Mayor) further, in supporting
the residents of Knysna, asked the National Department of Human
Settlements to allocate an amount of R40 million of its USDG grant
allocation to assist the residents of Knysna.
The City of Cape Town’s 2016/2017 USDG expenditure (92,8%) is the
highest since 2012/2013 (93,6%). Residual funds are contractually
committed.
- The City’s full 2017/2018 USDG allocation has been fully allocated to projects (focussing on poor households) as approved on the Council budget.
The City, following its Organisational Development & Transformation
process aimed at focussing on a transversal approach to project and
service delivery, coupled with its Capital Project Portfolio
Management approach anticipates another high level of contract
commitment and expenditure for 2017/2018.
(3) The question is covered in 1 & 2 above.
